E*TRADE vs Fidelity Solo 401k (2026)
A comprehensive comparison to help you choose between E*TRADE Solo 401k and Fidelity Solo 401k
E*TRADE
E*TRADE offers one of the most feature-rich prototype Solo 401k plans available, with both Roth contributions and loan provisions at no cost.
Visit E*TRADEFidelity
Fidelity offers a full-featured Solo 401k with Roth contributions, industry-leading low costs, and zero-expense ratio funds - now matching most competitors on features.
Visit FidelityChoosing between E*TRADE and Fidelity for your solo 401k is genuinely one of the better problems to have in 2026. Both providers offer completely free prototype plans with $0 setup and $0 annual fees, and both deliver institutional-quality brokerage platforms that would have cost thousands in administrative fees just a decade ago. The real question isn't which plan is better—they're both excellent—but rather which one aligns with how you actually run your business and manage your finances.
The fundamental difference comes down to one feature: participant loans. E*TRADE is the only free solo 401k provider that offers both Roth contributions AND the ability to borrow up to $50,000 from your own retirement account. Fidelity, meanwhile, doesn't offer loans but counters with something equally compelling for long-term investors: their proprietary zero-expense ratio index funds, including FZROX and FZILX, which literally cost nothing to hold.
Both providers earn a 4.5 out of 5 rating, and that's not a cop-out—they genuinely represent the top tier of free prototype plans available today. Neither supports after-tax contributions or mega backdoor Roth strategies, so if those advanced features matter to you, you'll need to look at custom document providers instead. But for the vast majority of self-employed individuals who want a straightforward, powerful retirement account without ongoing costs, this comparison represents the best of what's available. Your decision should hinge on a simple question: do you value liquidity and emergency access, or are you optimizing purely for long-term wealth accumulation?
Our Rating
Pricing Comparison
| Fee Type | E*TRADE | Fidelity |
|---|---|---|
| Setup Fee | $0 | $0 |
| Annual Fee | $0 | $0 |
| First Year Total | $0 | $0 |
Long-Term Cost Analysis
See how costs add up over time
| Time Period | E*TRADE | Fidelity | Difference |
|---|---|---|---|
| 1 Year | $0 | $0 | Same |
| 3 Years | $0 | $0 | Same |
| 5 Years | $0 | $0 | Same |
| 10 Years | $0 | $0 | Same |
Green highlighting indicates the lower-cost option for each period.
Feature Comparison
| Feature | E*TRADE | Fidelity |
|---|---|---|
Roth Contributions After-tax contributions with tax-free growth | ||
Participant Loans Borrow up to $50,000 from your plan | ||
After-Tax (Mega Backdoor) Contribute beyond standard limits | ||
Alternative Investments Real estate, crypto, private equity | ||
Checkbook Control Direct investment management |
Pros and Cons
Pros
- Offers both Traditional and Roth contributions
- Allows participant loans up to $50,000
- No setup or maintenance fees
- Wide range of investment options including stocks, ETFs, mutual funds, and options
- Commission-free online trades for stocks and ETFs
- Strong mobile app and research tools
Cons
- Limited in-service distribution options
- No after-tax (Mega Backdoor Roth) contribution option
- Cannot hold alternative investments like real estate
- Must use E*TRADE platform for investments
Pros
- Offers both Traditional and Roth contributions
- $0 trading fees for stocks, ETFs, and options
- Full range of investment options
- Accepts rollovers for backdoor Roth IRA strategies
- Zero-expense ratio index funds (FZROX, FZILX)
- Excellent research and educational resources
- Strong customer service reputation
Cons
- No participant loan provisions
- No after-tax contribution option
- Limited to Fidelity platform investments
User Sentiment
E*TRADE
Highly rated for the specific demographic of "Liquidity Seekers." The ability to access a $50,000 line of credit tax-free via a participant loan without paying a setup fee is a massive value proposition.
Fidelity
Top tier for "Basic" users. The addition of Roth removed the single largest complaint from the user base. The platform is praised for reliability, banking/brokerage integration, and high quality customer support.
Our Verdict
Both E*TRADE and Fidelity deliver exceptional value, and honestly, you can't make a wrong choice here. The decision comes down to your financial philosophy and business circumstances.
If cash flow variability is part of your self-employment reality—and for most of us, it is—E*TRADE's loan provision provides meaningful peace of mind. Knowing you can access up to $50,000 of your own money without taxes or penalties, then pay yourself back with interest, creates a financial safety net that many solo business owners find invaluable. You're not sacrificing anything else: E*TRADE's brokerage platform is robust, their fund selection is comprehensive, and you still get Roth contributions.
Fidelity's edge is subtler but compounds powerfully over decades. Their zero-expense ratio funds eliminate one of the few remaining costs in retirement investing. On a $500,000 portfolio, even a 0.03% expense ratio difference adds up to real money over 20 or 30 years. Fidelity also offers arguably the best customer service in the industry, with 24/7 phone support and an interface that's been refined over years of iteration.
Our recommendation: choose E*TRADE if you want the option of loans, even if you never use them. Choose Fidelity if you're confident you won't need to access these funds before retirement and want to minimize every possible cost.
Which Provider is Right for You?
Choose E*TRADE if:
E*TRADE is ideal for self-employed professionals whose income fluctuates seasonally or project-to-project. If you've ever faced a cash crunch between client payments, or if your business might need emergency capital for equipment or opportunities, the loan provision offers flexibility no other free plan matches. It's also the right choice if you simply sleep better knowing that safety valve exists.
Choose Fidelity if:
Fidelity is the better fit for disciplined long-term investors who view their solo 401k as truly untouchable until retirement. If you have separate emergency funds, stable income, and your primary goal is maximizing wealth accumulation with minimal friction, Fidelity's zero-expense funds and exceptional platform create the ideal environment for decades of compound growth.